Stock market losses N1.9trn to profit-taking

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•Analysts finger Dangote Refinery IPO

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By Peter Egwuatu

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The Nigerian equities market reversed bullish trend last week, as N1.9 trillion was lost to widespread profit-taking across major stocks.

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The market was bullish penultimate week, as investors gained N3.73 trillion on the Nigerian Exchange Limited, NGX.

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However, last week’s trading was characterised by heavy selling pressure across banking, industrial goods, consumer, oil and gas, and insurance stocks, with the bearish sentiment extending to several highly liquid stocks that had supported the market’s earlier rally.

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Specifically, the NGX market capitalisation declined to N157.587 trillion from N259.558 trillion recorded penultimate week.

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In similar manner, the NGX All Share Index, ASI, another major performance indicator, nosedived by 1.6% to close at 243,052.74 points from 246,992.44 points penultimate week.

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Trading on the NGX closed the week with total transactions across equities, bonds and exchange-traded products, ETPs, valued at about N130.73 billion.

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Analysts noted that the broad nature of the sell-off suggests that investors were not simply reacting to company-specific developments but actively reducing risk, and locking in gains after the market’s strong Year-to-Date,YtD performance. The sharp deterioration in market breadth further reinforced the bearish tone, as only a handful of stocks attracted buying interest while losses spread across much of the exchange.

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The decline also came against the backdrop of increased portfolio repositioning ahead of the Dangote Refinery Initial Public Offering, which is scheduled to open for public subscription on September 14, 2026.

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Analysts noted that the forthcoming offer could become an important liquidity event for the domestic market, potentially encouraging investors to raise cash by trimming existing positions. This may be contributing to the increased selling pressure in stocks that have recorded significant gains.

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Commenting on market performance and outlook, analysts at InvestData Consulting Limited, said: “The Dangote Refinery IPO adds another layer to the liquidity outlook. ‘‘Investors looking to participate in the offer may reallocate funds from existing holdings, creating additional pressure on stocks with weaker near-term catalysts. The impact could become more visible as the subscription date approaches.

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‘‘However, the current correction does not necessarily signal a fundamental deterioration in the Nigerian equity market. Corporate earnings, domestic liquidity and improved investor participation remain important medium-term drivers.

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The NGX is likely to remain volatile in the near term as investors balance profit-taking against the market’s underlying fundamental outlook.

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‘‘The upcoming Dangote Refinery IPO could remain an important source of portfolio repositioning, while movements in crude oil prices, corporate earnings expectations and domestic liquidity will continue to influence sentiment.”

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